Mahle Sees India’s Multi-Fuel Mix Boosting Global Aftermarket Growth

India’s expanding economy, rising car ownership, and dominance of internal combustion engines and hybrids in the medium to long term are making the country one of the most attractive growth markets for auto component major Mahle’s global aftermarket business.

Mahle said India’s aftermarket is growing faster than most major regions, supported by an expanding vehicle base and rising disposable incomes. The company sees strong long-term demand as more vehicles enter the market and existing vehicles age, increasing the need for replacement parts and repairs.

“India's aftermarket is one of the most important markets for us in terms of aftermarket growth worldwide because the car parc in India is growing much faster than in other regions, even faster than in China,” said Didem Ekiz, Director and General Manager for MAHLE Lifecycle and Mobility Asia Pacific.

Mahle expects ICE and hybrid vehicles to remain dominant in India for at least the next five to ten years, limiting the near-term impact of electric vehicles on the aftermarket. “We believe that internal combustion engines and hybrid cars will still dominate the car parc in India in the next five to ten years,” Ekiz said.

According to Arijeet Gupta, Head of MAHLE Lifecycle and Mobility India, electric vehicles will make up only a small share of India’s vehicle parc by the end of the decade. “Even in 2030, approximately only 5% of the car parc will be electric vehicles,” Gupta said. He said this supports stable demand for traditional aftermarket components.

Mahle Lifecycle and Mobility operates across multiple segments of India’s aftermarket, including passenger vehicles, two-wheelers, commercial vehicles, and industrial applications such as construction and mining equipment. Passenger vehicles form the largest part of its aftermarket business in India, followed by two-wheelers and the industrial segments.

The company is also expanding its industrial aftermarket presence through additional brands introduced in India over the past year, targeting commercial vehicles and heavy equipment. It aims to strengthen its position by offering a full range of products across segments, including engine components, filtration, and thermal systems.

Thermal management remains a key focus area, even as electrification progresses globally. “Thermal management products are going to remain relevant in the electric range,” Gupta said, noting that such systems remain critical for both conventional and electric vehicles.

On exports, Mahle sees India emerging as an increasingly important manufacturing and supply hub, supported by economic growth and changing global supply chains. The company currently serves neighbouring South Asian markets through distribution partners and also exports globally through inter-company supplies from India.

India’s role is expected to grow further as global companies diversify production beyond China. “India can become one of the most powerful export hubs for global demand,” Ekiz said. As geopolitical conditions change worldwide, global companies are looking at a China-plus-one strategy. “India fits well into that strategy,” she said, adding that India’s demographic strength and economic growth prospects underpin this view.

“The recent free trade agreement with the European Union is another positive development. This can help position India as an important production hub, not only for domestic demand but also for exports.”

Mahle exports from India through two channels - distribution partners in neighbouring markets and supplies within its global network. “There are two export routes. One is through distribution partners in Sri Lanka, Bangladesh, Nepal, and Bhutan. The other route leverages India’s manufacturing capabilities through inter-company sales.”

Components such as filters, thermal systems, and engine parts manufactured in India are supplied worldwide under this structure. The company believes trade agreements and global realignments could further expand India’s role.

Ekiz noted that these factors together make India a key pillar of its global aftermarket strategy, with growth expected to remain strong over the coming years as vehicle ownership rises and the country continues to follow a multi-fuel path.